NEW YORKâTechnology shares led U.S. stocks higher, reversing much of a day-earlier slide, as investors eyed corporate earnings and steady economic readings in the U.S. and Europe.
The Dow Jones Industrial Average rose 99.22 points, or 0.7%, to 13979.30. The advance erased much of the Dow's 130-point drop on Monday, its biggest daily tumble since Dec. 28.
The Standard & Poor's 500-stock index gained 15.58 points, or 1%, to 1511.29 Tuesday. The Nasdaq Composite Index increased 40.41 points, or 1.3%, to 3171.58.
Technology shares in the S&P 500 led gains across all 10 sector groups in the index. Computer Sciences (CSC)
"The big macroeconomic issues are abating and now there's a wall of money coming into the equity markets," said Diane Jaffee, who helps oversee about $6 billion as group managing director of U.S. equities at TCW. "It's not all a bed of roses, but we do think the economy is starting to engage."
The U.S. nonmanufacturing sector expanded at a slower rate last month than in December, according to data released by the Institute for Supply Management, though the reading was slightly better than economists expected.
European markets were broadly higher after data showing private-sector activity in the euro zone contracted at the slowest rate in 10 months. But December retail sales in the euro zone declined 0.8% on the month, the largest month-to-month drop since April.
The Stoxx Europe 600 rose 0.6% after sliding 1.5% on Monday. Spain's IBEX 35 index climbed 2.2% after slumping 3.8% a day earlier.
"It boils down to a global recovery story," said Sandy Lincoln, chief market strategist at BMO Global Asset Management, which oversees $120 billion. "There is evidence that traction is beginning to occur. Relative to other asset classes, equities seem to me to be sitting in the first chair."
Asian markets were mostly lower. Japan's Nikkei Stock Average slumped 1.9%, pulling back from the 4Â½-year high reached Monday, after a disappointing quarterly report and lowered outlook from conglomerate Hitachi weighed on other exporters.
China's Shanghai Composite added 0.2% after the country's central bank made the largest-ever daily liquidity injection to loosen up the money markets ahead of the Lunar New Year holiday.
Front-month March crude-oil futures climbed 0.5% to settle at $96.64 a barrel, while February gold futures slipped 0.2% to settle at $1,672.40 an ounce. The dollar fell against the euro, but rallied against the yen. The 10-year Treasury note fell in price, pushing the yield up to 2.013%.
In the corporate arena, Dell (DELL)
Estee Lauder (EL)
Cardinal Health (CAH)
Yum Brands (YUM)
The U.S.-listed shares of the U.K.'s Virgin Media (VMED)
NYSE Euronext (NYX)
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